Notes to SEFA
Accounting Policies: Such expenditures are recognized following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negativeamounts shown on the Schedule represent adjustments or credits made in the normal course ofbusiness to amounts reported as expenditures in prior years.The financial statements for the governmental fund types contained in the Towns basic financialstatements are prepared on the modified accrual basis of accounting. The government-wide financialstatements are prepared on the full accrual basis of accounting.? Revenues are recognized as soon as they are both measurable and available. Revenues areconsidered to be available when they are collectible within the current period or soon enoughthereafter to pay liabilities for the current period.? Expenditures are generally recorded when the related fund liability is incurred, if measurable.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Therefore, someamounts presented in this schedule may differ from amounts presented in, or used in the preparationof, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.